(Agencies)
Updated: 2007-12-25 09:30

TOKYO - Japan plans to propose a joint fund worth a total of 200 billion yen (US$1.8 billion) with China to help Beijing step up environmental protection efforts, a newspaper said Monday.

The government and ruling parties were working out the details, with Prime Minister Yasuo Fukuda intending to propose the plan during his visit to China starting Thursday, the Nikkei business daily said.

The fund will likely be used to extend low-cost loans to small- and mid-sized Chinese firms to set up wastewater treatment and other pollution prevention facilities, the newspaper said.

It would also support sewage system projects launched by local governments.

Japan is also considering sending experts in pollution control to China to train local environmental specialists, the report said, and encouraging the hiring of retired Japanese with expertise in the field.

The Japanese side is to offer 100 billion yen to the fund, with China likely to contribute the same amount, the Nikkei said.

The investment will likely be made through the Japan Bank for International Cooperation, it added.